GTAA Reports 2015 Third Quarter Results: Strong Passenger Growth Continues at Toronto Pearson
The Greater Toronto Airports Authority (the “GTAA”) today reported its financial and operating results for the three- and nine-month periods ended September 30, 2015. Passenger volumes continued to grow during the third quarter of 2015 reflecting both the economic strength of the Greater Toronto Region, and the role of Toronto Pearson as Canada’s largest airport and North America’s second busiest airport in terms of international passengers.
“As the Southern Ontario region continues to grow, and more passengers travel through Toronto Pearson as their preferred global gateway, we are seeing demands for air travel increasing,” said Howard Eng, President and CEO of the GTAA. “Our role is to work with all stakeholders to ensure that we support the demands of our passengers today, and also to work together to discuss long term planning for a regional strategy that considers the reality of travel demand in the next 20 years.”
A total of 31.4 million passengers travelled through Toronto Pearson International Airport in the first nine months of 2015, a 6.9 per cent increase compared to the same period in 2014. During the nine-month period ended September 30, 2015, passenger activity in the international sector (which includes US transborder) increased by 8.2 per cent and the domestic sector by 4.7 per cent, over the same period in 2014.
For the three- and nine-month periods ended September 30, 2015, the GTAA reported total revenues of $325.2 million and $902.7 million, representing improvements of $18.1 million and $34.1 million from the same periods in 2014, respectively. The continued growth in non-aeronautical revenue in the retail and food and beverage sectors reflects the success of the GTAA’s commercial redevelopment program. During the first nine months of 2015, there were 17 new store openings including eight stores in Terminal 1 and nine stores in Terminal 3.
Total operating expenses during the quarter ended September 30, 2015 were $192.6 million, a $16.7 million increase when compared to the third quarter of 2014. During the first nine months of 2015, total operating expenses were $567.8 million, a $29.9 million increase when compared to the first nine months of 2014. The GTAA has hired additional personnel in the third quarter of 2015 in its De-icing Operations in order to ensure safety, on-time departures and improve the customer service. In addition, the GTAA continued to enhance the customer experience by providing free use of baggage carts to passengers and by investing in preventative maintenance and additional airport security. Earnings before interest and financing costs were $132.6 million and $334.9 million for the three- and nine-month periods ended September 30, 2015, respectively. After accounting for interest and financing costs, the GTAA recorded net income of $44.3 million for the third quarter and $65.1 million for the first nine months of 2015, compared to net income of $36.8 million for the third quarter and a net loss of $36.2 million for the first nine months of 2014.
The GTAA’s September 30, 2015 financial results are discussed in more detail in the GTAA’s Financial Statements and Management’s Discussion and Analysis, each for the quarter ended September 30, 2015, which are available at www.torontopearson.com and on the Canadian Securities Administrators’ website atwww.sedar.com.